HMWK6 Chapter 12 Questions
Please answer and submit the following questions as part of your weekly homework.
• Chapter 12: questions 1, 2, 3, 4, 5, 6, 7, and 8 on page 358 of the text. (it takes three hours) (W6.1 through W6.4).
12th Chapter Questions
1. What distinguishes the pro forma statement used in this chapter for calculating OCF from an accountant’s income statement? (LG12-1)
2. Assume you hired your old college finance professor to appraise a proposal on your behalf. If you would pay him regardless of your decision concerning whether to proceed with the project, should his fee for evaluating the project be included in the project’s incremental cash flows? (LG12-2)
3. Why does a decrease in NWC result in a cash inflow to the firm?
(LG12-3
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Questions for HMWK6 Chapter 12
As part of your weekly homework, please answer and submit the following questions.
• Chapter 12: on page 358 of the text, questions 1, 2, 3, 4, 5, 6, 7, and 8. (It takes three hours to complete) (W6.1 through W6.4).
Questions for the 12th Chapter
1. What separates the pro forma statement used in this chapter for calculating OCF from an income statement prepared by an accountant? (LG12-1)
2. Assume you hired your old college finance professor to evaluate a proposal for you. Should his fee for analyzing the project be included in the project’s incremental cash flows if you would pay him regardless of whether you decided to proceed with the project? (LG12-2)
3. What causes a decline in NWC to result in an inflow of cash?
